Investors and lenders in the apartment market are on pins and needles over growing calls for rent control.
As a solution to a real problem though, new demands for rent control are repricing assets in a way that
may lead to loan defaults and lower housing availability over the long run.
The rent is too darned high. In looking at this issue, it is important to understand why there is a growing call
for rent control in some parts of the U.S. – some parts but not all. In New York in 2019, for instance, the
apartment rental component of the CPI stands 28% higher than the average rent level seen in the market
since 1944. This is the level when you strip out the general trend in inflation.